We were talking about how a bunch of employment costs are fixed. How changing the labor costs does not affect all the other costs.
Sure, I'll agree to a miniscule amount of higher prices. If only 6% of people make minimum wage then raising it will not seriously impact prices.
I highly doubt you've actually run the numbers of how much costs are impacted due to the raise of a minimum wage. I know you say you're a business owner, but these answers make me skeptical. Even if you are, it doesn't sound like you have run the numbers.
As for your bar example, do your bartenders actually make minimum wage? They get the service industry minimum and make most of their income from tips. Bartenders aren't actually "minimum wage", all it means is that their tips add up something that's higher than minimum wage, otherwise that's what they make. Increasing the minimum wage on bartenders would not drive up the price of drinks, in fact it wouldn't affect their wage AT ALL. All it would do is increase the minimum they must earn with tips, which wouldn't change the real amount they earn or the real costs of employing them.
I mean maybe you pay them minimum wage and let them keep what they earn in tips, but that's not how people make money in the service industry.
Even if we assume this specious argument that it would raise prices, you're not seriously going to tell me that a 30 cent increase on minimum wage for a bartender will affect the price of an 8 dollar beer. They only need to serve like 8 drinks an hour to make 'minimum wage'.
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Date: 18/3/12 03:08 (UTC)Sure, I'll agree to a miniscule amount of higher prices. If only 6% of people make minimum wage then raising it will not seriously impact prices.
I highly doubt you've actually run the numbers of how much costs are impacted due to the raise of a minimum wage. I know you say you're a business owner, but these answers make me skeptical. Even if you are, it doesn't sound like you have run the numbers.
As for your bar example, do your bartenders actually make minimum wage? They get the service industry minimum and make most of their income from tips. Bartenders aren't actually "minimum wage", all it means is that their tips add up something that's higher than minimum wage, otherwise that's what they make. Increasing the minimum wage on bartenders would not drive up the price of drinks, in fact it wouldn't affect their wage AT ALL. All it would do is increase the minimum they must earn with tips, which wouldn't change the real amount they earn or the real costs of employing them.
I mean maybe you pay them minimum wage and let them keep what they earn in tips, but that's not how people make money in the service industry.
Even if we assume this specious argument that it would raise prices, you're not seriously going to tell me that a 30 cent increase on minimum wage for a bartender will affect the price of an 8 dollar beer. They only need to serve like 8 drinks an hour to make 'minimum wage'.